Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access
Publication Date
1-1-2025
Document Type
Article
Publication Title
European Financial Management
DOI
10.1111/eufm.12543
Abstract
We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.
Keywords
climate risk belief, loan acceptance, mortgage, sea-level rise
Department
Accounting and Finance
Recommended Citation
Chengbo Fu, Qiping Huang, Meimei Lin, and Salman Tahsin. "Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access" European Financial Management (2025). https://doi.org/10.1111/eufm.12543
